The momentum for higher layer protocols has been on the rise throughout the month of August as The long-awaited launch of the London hard fork on the Ethereum (ETH) network has not done much to solve the network’s high transaction fees and delays in confirmations.
One of the biggest beneficiaries of the search for a more welcoming smart contract environment has been Cosmos (ATOM), a project focused on interoperability that has set out to become the “internet of blockchains” thanks to its Inter-Blockchain Communication (IBC) protocol.
The data from Cointelegraph Markets Pro and TradingView show that ATOM’s price spiked 180% from a low of $ 8.87 on July 20 to a high of $ 24.77 on August 22., while its trading volume in 24 hours went from an average of $ 250 million to $ 1.87 billion.
Among the three reasons that explain the good performance of ATOM in the last month are the launch of decentralized financial protocols on the network, the launch of a sidechain that allows the exchange of assets between Cosmos and Ethereum and the announcement of plans to incorporate Bitcoin (BTC) to the Cosmos ecosystem.
Expanding DeFi Capabilities
Decentralized Finance (DeFi) has been one of the biggest developments to emerge from the blockchain ecosystem in the last two years and they are destined to revolutionize the traditional financial sector.
The recent release of the first functional user interface for DeFi in Cosmos, known as Emeris, has been one of the biggest ATOM price drivers of late, since the introduction of the capabilities of Cross-chain exchange excited members of the Cosmos community and sparked a spike in demand for the token.
⚛️ ✨Emeris beta, the first interface for #GravityDEX, is NOW live
Experience the power of cross-chain DeFi today
– Cosmos – Internet of Blockchains ⚛️ (@cosmos) August 18, 2021
Emeris beta, the first interface for #GravityDEX, is now live
The cross-chain portal @emerisHQ has just been launched, making DeFI in Cosmos a reality!
Experience the power of DeFi cross-chain today
Through the new interface, users can access a number of DeFi cross-chain protocols on the Cosmos network and trade. with assets on blockchains such as IRISnet (IRIS), Persistence (XPRT) and the Akash network (AKT).
Ethereum bridge opens up opportunities
A second reason for ATOM’s rally is the Sifchain integration with the IBC (Inter-Blockchain Communication), which made the project the first decentralized exchange that allows operations between the Cosmos ecosystem and the Ethereum network.
The value that Sifchain brings to the cosmos ecosystem is undeniable, and we look forward to building an exciting interchain future together!$ ATOM $ ROWAN $ IRIS $ AKT $ CRO $ OSMO $ ION $ DVPN $ XPRT $ REGEN $ IOV https://t.co/gP8Ek3buRE
– Cosmos – Internet of Blockchains ⚛️ (@cosmos) August 27, 2021
Another bright star joins us:
Welcome to the #IBCgang, @sifchain!
The value that Sifchain brings to the Cosmos ecosystem is undeniable, and we are looking forward to building an exciting interchain future together! ATOM, ROWAN, IRIS, AKT, CRO, OSMO, ION, DVPN, XPRT, REGEN, IOV
Ethereum currently hosts most of the major smart contract protocols for DeFi and NFT, and this integration allows users of both ecosystems to easily exchange assets between the two networks.
Wrapped Bitcoin comes to Cosmos
A third reason for the current bullish momentum comes from an August 23 announcement that the Interchain Foundation (IFC), an organization that funds development grants in the Cosmos ecosystem, had granted funding to the Interlay development fund to bring Bitcoin to the Cosmos network.
Bitcoin #BTC is coming to #Cosmos! @inter_btc is building an #IBC bridge to enable any IBC compatible chain to access trustless Bitcoin. This exciting step will help Cosmos grow the #DeFi sector & improve inter-blockchain collaboration.
Read more: https: //t.co/wonb7l0q8W pic.twitter.com/REDoB2Pb4n
– Cosmos – Internet of Blockchains ⚛️ (@cosmos) August 23, 2021
Bitcoin BTC is coming to Cosmos! @inter_btc is building an IBC bridge to allow any IBC compliant chain to access Bitcoin without trust. This exciting step will help Cosmos grow the DeFi sector and enhance cross-blockchain collaboration.
Bitcoin is the undisputed leader of the cryptocurrency market and houses a large majority of the accumulated wealth in the ecosystem, so the possibility of operating in Cosmos has the potential to attract new users to the network.
Interlay uses a lock-up and vault technology that allows users to secure their Bitcoin and to mint fully collateralized interBTCs that can be used in many DeFi projects and the feature is now available as a Polkadot parachain.
This integration will allow the use of BTC in the Cosmos DeFi ecosystem and will bring great liquidity and increased utility to the network.
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